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E-Rate 101: Basics of the Program Fall 2010
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Contact Information Pam Jacobs 515-975-0071 pam.jacobs@iowa.gov A copy of this PowerPoint presentation is available at: http://www.iptv.org/iowa_database/erate/
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What is E-rate? Discount Program for Schools and Libraries 20-90% discounts on telecommunications services, Internet access, internal connections and maintenance for internal connections Annual $2.25 billion program nationwide NOT a competitive grant program
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Who is Eligible to Participate? Libraries Schools
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Library Eligibility Non-profit, public libraries Eligible for LSTA (Library Services and Technology Act) Can be: – single library – consortia – library system
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School Eligibility All public schools: –school districts –AEAs “Other school programs” as determined by Iowa Department of Education (see DE Directory) Non-profit, private K-12 schools with endowment of $50M or less Must meet federal definition of elementary or secondary school
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What is My Discount?
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Two Criteria Make Up Discount: Poverty Location
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Poverty Based on National School Lunch Program Eligibility Direct Certification Data is permitted (not just the number of students participating in NSLP) As a school/district, you are allowed to use October 1 data or “most current figure available” Libraries use discount from school district in which they are located.
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Urban/Rural defined by counties Location
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Iowa Counties which are Urban: Black Hawk Dallas Dubuque Johnson Linn Polk Pottawattamie Scott Warren Woodbury
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Discount Matrix Percent of Eligible Students UrbanRural Less than 1%20%25% 1% - 19%40%50% 20% - 34%50%60% 35% - 49%60%70% 50% -74%80% 75% -100%90%
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What is Funded Through E-rate? Five categories of service –Priority 1 (funded first) Telecommunications Services Telecommunications NEW! Internet Access –Priority 2 (starts with neediest applicants) Internal Connections Basic Maintenance of Internal Connections
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Must be provided by a telecommunications carrier Examples: –Local & long distance –Cell phone service –Digital transmission services (e.g. Ethernet, frame relay, T-1, etc.) Including all taxes and surcharges! Eligible Services: Telecommunications Services (Priority 1)
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Eligible Telecommunications Services (Priority 1), cont. VoicemailVoicemail Wireless transmission service for 2-way communications (e.g. wireless connection from your high school to the elementary)Wireless transmission service for 2-way communications (e.g. wireless connection from your high school to the elementary) CentrexCentrex Blackberry-type serviceBlackberry-type service
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Eligible Services: Telecommunications (Priority 1): NEW CATEGORY Leased fiber or dark fiber (i.e. fiber is “lit” by the provider or is “lit” by the applicant) Apply for this on form 470 under 2 categories: telecommunications services and Internet
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Internet Access Services Web hosting service Blackberry-type service Eligible Services: Internet Access (Priority 1)
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– Wiring – Routers – Switches – Hubs – Network servers – System operating software – Wireless LANs – Private branch exchange (PBX) Eligible Services: Internal Connections (Priority 2)
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Eligible Services: Maintenance of Internal Connections (Priority 2) Maintenance of previously purchased internal connections (does NOT include end-user equipment such as computers) Rules are changing about SMARTnet-type billing (must bill for actual hours not a service contract amount)
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Where can we see the eligible services list? Answer: Eligible services list is at http://www.usac.org/_res/documents/ sl/pdf/ESL_archive/EligibleServicesLi st_110910.pdf http://www.usac.org/_res/documents/ sl/pdf/ESL_archive/EligibleServicesLi st_110910.pdf
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Discounts Come in 2 Forms: –Discounts on bills OR –Reimbursements from service provider (service provider gets reimbursed by USAC)
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How Discounts Work $100 (existing) bills you would pay You apply to for discounts You get 55% in discounts You now only owe $45 The vendor’s bill drops by $55 Vendor gets $55 from SLD! Vendor invoices USAC/USAC approves invoice How Discounts Work
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How Reimbursements Work 10/9/2007CDE/VET/E-rate/CTF 2000-2001 (BEGINNER) $100 (existing) bills you would pay You apply to for discounts You get 55% in discounts You apply for reimbursement You pay 100% of bill Vendor sends you $55! USAC approves paperwork/sends check to vendor How Reimbursements Work
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General Rules of E-Rate Competitive bid on SLD web site for 28 days Price must be the single most important factor Application in ‘window’ to SLD each year SLD funds on rules of priority –Priority 1: Telecom services, Telecom, and Internet Access –Priority 2: Internal Connections and Maintenance
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“2 in 5 Rule” Applies only to internal connections (priority 2) An applicant can only get internal connections funding in 2 out of 5 years Questions about this? Give me a call.
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What About the Tech Plan? Tech plans are only needed if filing for priority 2 services. THIS IS NEW! (previously everyone had to do tech plans). If your district/school/library has a free/reduced lunch eligibility of 40% or more, then I recommend doing a tech plan (possibility of getting priority 2 funded)
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Tip 1: Get Organized by Funding Year Create a notebook and/or electronic file –Form 470 –Form 471 –Form 486 –BEAR (if used)
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Tip 2: Get Frequent Updates Listserv: –AEAUSF@iptv.orgAEAUSF@iptv.org –USAC offers frequent updates
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Tip 3: Get Support! Have a backup person in your school/district/library Build support with your business office, supt./director and tech person Contact your AEA or library e-rate expert
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Who are the E-rate Players? Congress FCC (Federal Communications Commission) USAC (Universal Services Administrative Company) SLD (Schools and Libraries Division)
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Now You Know the Rules…. Let’s Walk Through the Application Process
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Application Process at a Glance: 1.Form 470: Old form available now…new form after first of next year. 2.Wait 28 days! Must wait that long! 3.Form 471: “window” will likely open in January likely close in March (dates not yet set) 4.Wait for questions from PIA 5.Funding commitment decision letter 6.Form 486: file to confirm services 7.If getting reimbursements, form 472 (BEAR)
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Form 471 Form 471: “window” will likely open in January and close in March
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Next Steps Wait for questions from PIA, e.g. Questions about your funding request Verification of your discount Funding commitment decision letter File form 486
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Reimbursements? Form 472(BEAR form) Available in online format if you have a PIN Service provider must OK this form (they have access to the online BEAR form with their own PIN)
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Upcoming Sessions December : What’s new for E-rate in 2011? January: Filing form 470 January: Filing form 471 Watch listserv for details!
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Resources to Remember SLD web site: www.universalservice.org/sl/www.universalservice.org/sl/ E-rate Central: www.e-ratecentral.comwww.e-ratecentral.com Iowa E-rate: www.iptv.org/iowa_database/erate www.iptv.org/iowa_database/erate SLD Client Service Bureau: 888-203-8100 pam.jacobs@iowa.gov: 515-975-0071pam.jacobs@iowa.gov
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